Bayonne's Billion-Dollar Studio: From Industrial Ruin to Film Future

BAYONNE, NJ – May 14, 2026 – A 74-acre scar on Bayonne’s waterfront, a relic of the city’s industrial past, is being dramatically reborn as a beacon of its creative future. 1888 Studios, a sprawling $1 billion-plus film and television production campus, is rising from the long-dormant former Texaco refinery site, a project of such scale and ambition that it recently earned the 2026 Emerging Markets Deal of the Year award from NAIOP New Jersey, the state's commercial real estate development association.

The award recognizes more than just a real estate transaction; it celebrates a monumental transformation. Where oil was once refined, stories will now be crafted. This venture, anchored by a major lease from Paramount, a Skydance Corporation, is not only set to redefine Bayonne’s skyline but also to cement New Jersey’s burgeoning status as a powerhouse in the global entertainment industry.

From Brownfield to Blockbusters

For decades, the waterfront property at Bergen Point sat vacant, a brownfield site on the Kill van Kull that served as a persistent reminder of a bygone industrial era. The transformation into a state-of-the-art media hub represents a landmark achievement in urban renewal, brought to life through a complex public-private partnership. The project's developer, Togus Urban Renewal, is investing approximately $900 million—$700 million for construction and $200 million for land development—to realize this vision.

Before the first foundation could be poured, extensive environmental remediation was required. Preparatory work, including the addition of clean fill to the soil, has been underway for two years to prepare the site for its new purpose. The city of Bayonne played a crucial role, rezoning the property in 2020 specifically for a film studio and establishing a 30-year Payment in Lieu of Taxes (PILOT) agreement. This agreement ensures a steady revenue stream for the city, starting at roughly $2.6 million annually and rising to $7.5 million over the term. The development also includes over five acres of public space, featuring a waterfront walkway and a park, returning a piece of the shoreline to the community.

"1888 Studios represents exactly the kind of transformative deal that defines what is possible in New Jersey’s commercial real estate market," said Dan Kennedy, CEO of NAIOP New Jersey, at the awards gala. "The conversion of a long-dormant brownfield into the Northeast's largest purpose-built production campus is a testament to the creativity and ambition of everyone involved in this public-private partnership."

Building New Jersey's Hollywood East

The economic ripple effects of 1888 Studios are projected to be immense. The construction phase, which officially broke ground in December 2025, is expected to create between 2,000 and 2,300 union jobs. Once the campus is fully operational in 2026, it is projected to generate at least 2,100 permanent union jobs, with the potential to climb to 3,000 as production schedules fill up.

This economic engine is supercharged by New Jersey's aggressive and highly competitive Film & Digital Media Tax Credit Program. In May 2024, 1888 Studios was designated the state's first "Film-Lease Partner Facility," a title that unlocks enhanced incentives for its tenants. Productions filming at the facility can receive tax credits of up to 40% on qualified expenses, one of the most generous rates in the nation. The program also includes a 4% bonus for meeting diversity hiring goals. This powerful financial tool, combined with the project's own $400 million in tax credits from the New Jersey Economic Development Authority's (NJEDA) Aspire Program, creates an almost irresistible draw for major studios.

"We set out to build something the New Jersey market had never seen – a purpose-built campus of this scale, designed for movie makers by movie makers," said Flynn Busson, President of Business Development for 1888 Studios, upon accepting the NAIOP award. "That vision is what NAIOP has recognized today, and we believe it will redefine where, and how great film and television are made.”

A Campus Designed for the Future of Film

The "for movie makers, by movie makers" philosophy is evident in every aspect of the 1.5 million-square-foot campus design. The facility will house 23 state-of-the-art "smart" stages, offering a range of sizes from 18,000 to a massive 60,000 square feet. With clear ceiling heights of at least 40 feet to the grid, these soundstages are built to accommodate the largest and most complex productions, including the infrastructure needed for cutting-edge technologies like LED volume capture.

Beyond the stages, the campus boasts features designed to streamline the entire production process. A privately owned 22-acre water backlot provides a controlled environment for aquatic scenes, a rare and valuable asset. The site also includes over 10 acres of basecamp parking, a dedicated five-story parking garage, and conveniently located on-site vendors for lighting, grip, and other essential services. Its strategic location, less than 30 minutes from Manhattan and within the crucial 25-mile union studio zone, offers unparalleled logistical advantages.

This all-inclusive ecosystem is designed to maximize creative freedom and operational efficiency, allowing filmmakers to focus on storytelling without the typical constraints of sourcing locations and services from multiple vendors across a congested metropolitan area.

The Paramount Effect and Competitive Edge

Perhaps the most significant vote of confidence in the project is the landmark 10-year lease signed by Paramount. The entertainment giant has committed to over 285,000 square feet of production space, establishing a major East Coast hub at the Bayonne facility. This anchor tenancy not only provides a stable revenue foundation for 1888 Studios but also acts as a powerful magnet, signaling to the rest of the industry that New Jersey is a premier destination for top-tier content creation. Paramount has since applied to the NJEDA for "Studio Partner" status, which would make it eligible for the coveted 40% tax credit on its New Jersey-based productions.

The arrival of 1888 Studios dramatically reshapes the competitive landscape in the Northeast. While New York City has long been the region's production center with established facilities like Silvercup Studios and York Studios, none can match the sheer scale, modern design, and campus-style integration of the Bayonne project. It joins a wave of major investments in New Jersey's film infrastructure, including Netflix's planned campus at Fort Monmouth and Lionsgate's studio in Newark, collectively heralding a new era for the Garden State. By combining world-class facilities with powerful financial incentives, New Jersey is making an undeniable case to become the new center of gravity for filmmaking on the East Coast.